Culver Automotive is looking to expand its operations and has approached Page Garage to acquire its business. Page has agreed to sell if Culver assumes the mortgage on Page's building as part of the sale. The fair value of Page's identifiable assets and identifiable liabilities are: Inventory $149,300 Buildings Land 949,300 349,300 Mortgage payable (274,900) Net identifiable assets $1,173,000 Assuming Culver purchases the business for $1,326,600: (a) Your answer has been saved. See score details after the due date. Calculate goodwill. Goodwill $ 153600 eTextbook and Media List of Accounts Attempts: 1 of 1 used (b) Record the journal entry for the purchase by Culver Automotive. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles Debit Credit
Culver Automotive is looking to expand its operations and has approached Page Garage to acquire its business. Page has agreed to sell if Culver assumes the mortgage on Page's building as part of the sale. The fair value of Page's identifiable assets and identifiable liabilities are: Inventory $149,300 Buildings Land 949,300 349,300 Mortgage payable (274,900) Net identifiable assets $1,173,000 Assuming Culver purchases the business for $1,326,600: (a) Your answer has been saved. See score details after the due date. Calculate goodwill. Goodwill $ 153600 eTextbook and Media List of Accounts Attempts: 1 of 1 used (b) Record the journal entry for the purchase by Culver Automotive. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles Debit Credit
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
Related questions
Question
am. 117.
Transcribed Image Text:Culver Automotive is looking to expand its operations and has approached Page Garage to acquire its business. Page
has agreed to sell if Culver assumes the mortgage on Page's building as part of the sale. The fair value of Page's
identifiable assets and identifiable liabilities are:
Inventory
$149,300
Buildings
Land
949,300
349,300
Mortgage payable
(274,900)
Net identifiable assets
$1,173,000
Assuming Culver purchases the business for $1,326,600:
(a)
Your answer has been saved. See score details after the due date.
Calculate goodwill.
Goodwill $
153600
eTextbook and Media
List of Accounts
Attempts: 1 of 1 used
(b)
Record the journal entry for the purchase by Culver Automotive. (If no entry is required, select "No entry"
for the account titles and enter 0 for the amounts. Credit account titles are automatically
indented when amount is entered. Do not indent manually. List all debit entries before credit
entries.)
Account Titles
Debit
Credit
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